Two Canadians charged for selling xbox games

[YLSF]

I read about it on XBOX scene but here is the original article link.


http://marketnews.ca/news_detail.asp?nid=382

Two Charged in Making & Selling Counterfeit Xbox Games

Windsor, ON, January 21, 2005: Two Amherstburg, ON residents are facing 21 charges under the Copyright Act, after RCMP investigators shut down an operation that was allegedly making and selling counterfeit Xbox games.

The RCMP received a complaint from Microsoft Canada, the manufacturer, copyright and trademark holder for Xbox, about a Website that was selling counterfeit games for modified Xbox systems. As part of the investigation, approximately 20 counterfeit games were purchased from the Website, which was tracked to a residence in Amherstburg.

A search warrant was executed at the home, during which the following was seized: five computers; equipment related to the manufacturing, testing and distribution of counterfeit Xbox games; two modified Xbox systems used to play the counterfeit games; three CD carrying cases containing more than 500 counterfeited games; more than 2,400 blank DVDs; and Internet orders for games.

Investigators believe the Website was in business for longer than 15 months, and sold in excess of 14,700 games at approximately US$7 each. Total sales is estimated at US$95,000, and games were sold all over the world, including in Australia, England, Ireland and Denmark.

Based on an average cost per legitimate game of US$50, investigators estimate the loss to the gaming industry and retailers at approximately US$735,000. This total does not include loss of tax revenue.

Tammy Colombe, 26, and Christopher Kay, 27 were both charged on January 12, 2005 with 15 counts of selling and six counts of making counterfeit goods.

RCMP notes to the public that if a video game requires the gaming console to be modified in any manner (i.e. a “mod� chip is required to play the game), than it is a counterfeit game


Haha.. I just read the last line.. that is FUNNY.. I can just see the sales guy saying "oh.. no, no .. this is legit... We are going to put this chip in your xbox to make it play faster. Don't worry about the label falling off, it is all good "

[d_jedi]

Good stuff.

[Fobulous]

whoa nelly... thats a lot of games.

wonder how many halo 2's were sold this way!

[divx]

this guy made $95000 US? I can't believe they lasted 15 month. Should've got shutdown sooner.

[CSAgent]

2,400 blank DVDs? I wonder if they were TY... :D Don't wanna use bad DVDs now do they?

[YLSF]

haha.. Yeah, I wonder if one of those guys that posted a ROOM full of DVDs on one of the "dvd deal" threads was involved.. ;)

[CSR]

lOL i have a stockpile of Dvds

[Degenerate]

Serves them right for running it on a damn website.

Too bad the RCMP don't have the balls to raid Pacific Mall and shut down the stores for good.

[akito925]

this guy made $95000 US? I can't believe they lasted 15 month. Should've got shutdown sooner.

no one at futureshop boxing day sale of all the blank dvd-r's were sold out so quicky.. with one guy with a shopping cart full. lol.

[coldWater]

Investigators believe the Website was in business for longer than 15 months, and sold in excess of 14,700 games at approximately US$7 each. Total sales is estimated at US$95,000, and games were sold all over the world, including in Australia, England, Ireland and Denmark.

Based on an average cost per legitimate game of US$50, investigators estimate the loss to the gaming industry and retailers at approximately US$735,000. This total does not include loss of tax revenue.


if the price is $50/game, i don't think they can sell that much, so $735,000 is kinda misleading

[ynchu]

Serves them right for running it on a damn website.

Too bad the RCMP don't have the balls to raid Pacific Mall and shut down the stores for good.


Wow, and RCMP is satisfied with two little fishes...?
Welcome to GVRD, especially Richmond, and Burnaby, B.C. Meet the Chinese chipping experts. Perhaps they could get RCMP a few copies of GTA so they could train better... or sit back and relax.

[Coolisme]

if the price is $50/game, i don't think they can sell that much, so $735,000 is kinda misleading

No, the crooks were selling at $7/game. $7/game compared to $50/game (which is the retail price) is a large difference. They would have sold alot of games at $7/game.

[guest10586]

I sorta feel sorry for them but they did make a profit off of it. I feel worse for people who distribute without a profit and get charged. Well, the law never really cared much about the average citizen anyways. It just enjoys enforcing speeding tickets and charges from large companies.

There was another post where someone got scammed on <a href=../autolink/redirectpage.php?linkid=78 target=_blank>ebay</a> from a person still selling fake iPods and the police still don't do anything about it.

Yeah, the approsimate retail sale value is total garbage. Does microsoft really think anyone would buy that many games at $50-70 a game? Get real, PS2 on the other hand. :cheesygri

[Defiant]

Serves them right. Pirating for personal use is one thing, selling is another entirely. How stupid were they to think they could just setup a website and assume they would never be charged/sued ? Silly rabbit, Trix are for kids!

[wanted]

Yikes.... that's alot of money and GAMES!

[aquariaguy]

Why do the police always go after the little guys? Not the big ones who are selling it openly to the public, like pac. mall. I always wonder that...are they bribed?

[Kenneth]

Why do the police always go after the little guys? Not the big ones who are selling it openly to the public, like pac. mall. I always wonder that...are they bribed?

Because the larger guys are smart; they declare some or all of their income and pay taxes on it. At the end of the day charge for counterfeiting a million dollars worth of software is paltry compared to evading your taxes of an equal amount

[divx]

kenneth, i don't get it, u saying they pay tax on it, so it's legal that way? (or at least legal enough so the law doesn't care)

[Gdog]

Serves them right. Pirating for personal use is one thing, selling is another entirely. How stupid were they to think they could just setup a website and assume they would never be charged/sued ? Silly rabbit, Trix are for kids!

Ditto. They can blame themselves for being morons! Common sense people!!!

[Kenneth]

kenneth, i don't get it, u saying they pay tax on it, so it's legal that way? (or at least legal enough so the law doesn't care)

I'm not saying if they pay taxes it makes there whole business legit over night. Even if they pay extra taxes and bribe there local cabinet minister with a PS2; that still wouldn't make a difference.

It's just that the goverment has a vested interest in recieving revenue. But someone sending a letter from Redmond Washington doesn't really concern the CCRA. Even to the Crown proving someone pirated software for resale is quite difficult (even though the punishments are light). But proving someone evaded taxes entirely is quite easy and in all probably you'd end up in jail with the naked guy from Survivor.

[felix]

No, the crooks were selling at $7/game. $7/game compared to $50/game (which is the retail price) is a large difference. They would have sold alot of games at $7/game.
He means retail games sold at $50/game are quite expensive and not all will be sold. So the article was misleading in stating that the industry lost US$735,000.

[d_jedi]

Serves them right for running it on a damn website.

Too bad the RCMP don't have the balls to raid Pacific Mall and shut down the stores for good.


Wow, and RCMP is satisfied with two little fishes...?
Welcome to GVRD, especially Richmond, and Burnaby, B.C. Meet the Chinese chipping experts. Perhaps they could get RCMP a few copies of GTA so they could train better... or sit back and relax.

Which stores?

I think shooting a quick e-mail over to piracy@microsoft.com might help..

[atomic fire]

Which stores?

I think shooting a quick e-mail over to piracy@microsoft.com might help..
There are plenty of them. Theyv'e been shut down in the past but they just get pissed off and open more stores. Also they don't sell Xbox games just PS2 so reporting them to Microsoft won't do jack.

[doraemi]

the stores dun get shut down because they sale "legit games and accessories"...

you don't see no pirate crap the moment you walk in that store

[d_jedi]

There are plenty of them. Theyv'e been shut down in the past but they just get pissed off and open more stores. Also they don't sell Xbox games just PS2 so reporting them to Microsoft won't do jack.

I'm sure Sony would be equally interested in knowing where their stuff is being ripped off..

[d_jedi]

the stores dun get shut down because they sale "legit games and accessories"...

you don't see no pirate crap the moment you walk in that store

If you know which stores do this, send me a PM with their names, please?

[ragin_pyro]

haha.. Yeah, I wonder if one of those guys that posted a ROOM full of DVDs on one of the "dvd deal" threads was involved.. ;)
Wow really? Post a link, man, room full of dvds.

[webdoctors]

omg, these ppl are no better than ppl who make counterfeit money, they are disgusting, although i usually ignore when ppl do it for personal use, for profit is a total different ball game. These ppl are making a living off other ppl's work. Its just wrong. I hope they get a really stiff penalty, :twisted:

[seefuthead]

so whats their sentence? getting charged doesnt mean nothing. maybe a small fine. maybe small jail time. most the time they get away with it. theyre not stupid. they do it because they know their rewards are much greater then their punishment.

[sfu_lifer]

omg, these ppl are no better than ppl who make counterfeit money, they are disgusting, although i usually ignore when ppl do it for personal use, for profit is a total different ball game. These ppl are making a living off other ppl's work. Its just wrong. I hope they get a really stiff penalty, :twisted:
Did you Mean a real "Stiff" penalty up the waZoo?

[Degenerate]

If you know which stores do this, send me a PM with their names, please?
Go into Pacific Mall and you'll find about three stores on the first floor. Go to the second floor in the heritage town and you'll find another one in there. Go across the back parking lot into Market Village and you'll find another one there. That's just from the Market Village/Pacific Mall area. Let's see what can be done. They've been in business for over 6-7 years and people know about them. Nothing is going to happen to these guys.

[d_jedi]

Go into Pacific Mall and you'll find about three stores on the first floor. Go to the second floor in the heritage town and you'll find another one in there. Go across the back parking lot into Market Village and you'll find another one there. That's just from the Market Village/Pacific Mall area. Let's see what can be done. They've been in business for over 6-7 years and people know about them. Nothing is going to happen to these guys.

What are their names? If (from other posters), the games aren't on display, I doubt I'd be able to find them.. especially since they might not want to show their "warez" to a non-asian (I've heard several of the stores have especially poor customer service - to the point of being racist - for us white guys..)..

[Degenerate]

What are their names? If (from other posters), the games aren't on display, I doubt I'd be able to find them.. especially since they might not want to show their "warez" to a non-asian (I've heard several of the stores have especially poor customer service - to the point of being racist - for us white guys..)..
You'll have to find out the names for yourself. None of the stores have the games on display but they all have binders in open view for you to make your selections. They have tons of nonasian customers. So what exactly do you plan to do? I'm curious. Be careful that they don't take your ass out right in the mall as I've seen them do to other people.

[atomic fire]

LOL. Shutting down the stores in Pacific Mall? They have enough connections to beat the system. Why do you think they have been in business for so long?

[d_jedi]

LOL. Shutting down the stores in Pacific Mall? They have enough connections to beat the system. Why do you think they have been in business for so long?

And you don't think MS/Sony could crush them like a bug?
Probably still in business b/c nobody gave a damn to inform the proper authorities..

[dummer]

And you don't think MS/Sony could crush them like a bug?
Probably still in business b/c nobody gave a damn to inform the proper authorities..
Well I've actually consulted with lawyers that deal with piracy on this issue. The problem with going after these stores is the legal fees and it's not worth it. These places are usually run by the Big Circle Boys and they'll just open up another store while a case is pending with another store. MS/Sony couldn't give a damn about these stores. It's their suppliers that they need to worry about.

Let's see what you can do. Keep us up to date. Take pictures and videos!

[blakeatwork]

Good stuff.

no kidding... maybe now my sales will pick up... :P

(for those with no sense of humour, that was a joke)